David Ricardo Discovered That Two Countries Can Still Gain by Trading

question 201

Multiple Choice

David Ricardo discovered that two countries can still gain by trading even if one country is more efficient in the production of every commodity.Ricardo's discovery is called the law of

• A)comparative advantage.
• B)absolute advantage.
• C)compensating balances.
• D)increasing returns.

---

Definitions:

Northwest-Southeast Line

This term may refer to a geographic alignment or direction, potentially indicating the orientation of geological features or human-made structures.

Balanced Scorecard

A strategic planning and management system used by organizations to communicate what they are trying to accomplish and to measure and monitor progress towards strategic targets.

Organizational Performance

A measure of how effectively and efficiently an organization meets its goals and objectives.

Internal Processes

Refers to the procedures and operations that take place within an organization to ensure its smooth and effective functioning.